Business owners establish buy-sell agreements if there are partners, shareholders, or key employees in their business for continuity in the business. If the owner leaves due to death, retirement, disability, or such things as divorce or bankruptcy, the remaining owners will buy that owner's interest. 
  • Advances each owner's estate, tax, and retirement interests
  • Creates market in business if decedent owner wants to sell business
  • Setting price for business value for federal estate tax
  • Avoids partner fights caused by unwanted new owners

 

Senior family members, parents & grandparents, transfer their business interests to limited partnership. Younger family members, such as adult children, receive limited partnership interests and operate the business. Senior family members are general partners and retain control and guide the business success.
  • Transfer business assets away reduces gift and estate tax as partnership interests value is discounted to reflect lack of control & marketability
  • Transfers illiquid assets to younger generation
  • Bring younger family members into business while senior family members retain control
  • Creditor protection

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